fa l l 2 0 1 3
Industry insider
1
Winter 2014 Volume 4 Issue 15
contents
CANADIAN HOME BUILDERS’ ASSOCIATION – EDMONTON REGION (CHBA-ER) is the trade association of the new home building and home renovation industry in the Capital Region. Our role is to strengthen the industry and encourage the highest standards of product and business practices among our membership. Established in 1954, CHBA-ER is a not-for-profit organization representing more than 470 member companies. 150 Summerside Gate, SW Edmonton, Alberta T6X 0P5 Phone: 780-425-1020; Fax: 780-425-1031 Email: info@chbaedmonton.ca Sharon Copithorne | Chief Executive Officer scopithorne@chbaedmonton.ca
9
Dennis Peck | Government Relations Manager Email: dpeck@chbaedmonton.ca Dianne Burgess | Accounting Administrator Email: dburgess@chbaedmonton.ca Kimberley Banford | Programs & Services Manager /Events Email: kbanford@chbaedmonton.ca Lisa Chmilar | Membership Manager Email: lchmilar@chbaedmonton.ca Kendall Franklin | Conventions & Conference Manager Email: kfranklin@chbaedmonton.ca Meghan Rennick | Communications Manager Email: mrennick@chbaedmonton.ca Lori Galand | Administrative Assistant Email: lgaland@chbaedmonton.ca
Published by Source Media Group Corp. 207, 5809 Macleod Trail S.W., Calgary, AB T2H 0J9. Tel 403.532.3101, Toll free 1.888.932.3101 Fax 403.532.3109 email: info@sourcemediagroup.ca web: www.sourcemediagroup.ca Associate Publisher | Jim Zang Art Director | Jean Faye Rodriguez Graphic DesignerS | Lama Azhari, Dave Macaulay, Megan Sereda Production Co-ordinator | Colleen Leier Accounting | Donna Roberts Advertising Sales | Jennifer Mills jennifer.mills@sourcemediagroup.ca Tel 780.486.4101 ext 230, Cell 780.905.3575 Copyright 2013 by Source Media Group Corp. Material cannot be reprinted in whole or in part without the expressed written permission of the publishers. Source Media Group agrees to advertise on behalf of the advertiser without responsibility for claims or misinformation made by the advertiser and acts only as an advertising medium. Source Media Group reserves the right to refuse any advertising at its sole discretion. Industry Insider is published quarterly per annum and is distributed to every member of the Canadian Home Builders’ Association-Edmonton Region.
n
items
5
Message from the CEO
Year in review
22 Calendar of events 16 Board of Directors n
Meet your new board
features
18
7 Dan’s the man
Look Master Builder’s Dan Brazinha steps up as CHBA–ER President
9
A place to age
Canada’s population is getting older: is the housing industry reacting fast enough?
18 New home buyer protection act
7
What you need to know
20 Residential Construction Industry Conference
n
Two full days of leadership, learning and networking
committee reports
12 Government Relations
15 Membership
Important initiatives
14 Economic
In praise of 2013
The CHBA advantage
15 Membership NextGen members: the future of the industry W I N T E R 2 0 14
Industry insider
3
4 industry
insider
fa l l 2 0 1 3
message from the chief executive officer By Sharon Copithorne, C.E.O, Canadian Home Builders’ Association – Edmonton Region
Year in review 2013 full of changes and challenges
W
hile 2013 was a year of changes and challenges, I feel it is important to address some of the year’s highlights. For each story below there are many more that helped set the Association on track towards a healthier and more productive future. I’ll begin with our organizational structure. 2013 started out with a comprehensive committee review that considered mandates, human resources, and operational funds. The net result was the amalgamation of some committees and the discontinuance of others. Today the Association is operating effectively with 20 committees, down from 37 the year before. Engaged within these committees are 235 individual volunteers. Our local membership continues to grow. As I write this article, CHBA – ER’s membership stands at 472 companies. That’s a growth rate of 11 per cent since year-end 2012. This is a healthy sign that the Association is on the right track towards a positive future. Your Government Relations Committee has been particularly active this past year with members engaged in over 30 separate initiatives, working closely with nearly every municipality in the Capital Region. Of these initiatives, the vast majority were directly with the City of Edmonton; 18 are active and ongoing, 5 are new and in early planning stages, and 3 have been completed but are being watched. Of the 6 initiatives outside the City of Edmonton, 3 involved communities adopting completely new land use bylaws. One community is actively rewriting an entirely new land use
bylaw and the Association has already been engaged in the overall review process. These are key activities that affect the very core of the home building and home renovation industry and represent critical engagements by your Association. The recent municipal election was top of mind for our industry. CHBA – ER partnered with UDI on a Mayoral Candidate Forum in August, and hosted one of our own in September as part of our monthly dinner meeting program. Both events were very successful in terms of allowing us to define important issues for Edmonton’s leading mayoral candidates, and as a venue for members to hear the candidates’ positions on key industry issues. The Government Relations Committee has been engaged with the Edmonton Chamber of Commerce in developing the Red Tape Chamber Policy, and as a member on their Current Planning
Business Advisory Committee. We also established regular issue and operational meetings with the City of Edmonton Current Planning Branch, and our Executive Committee meets with UDI`s Executive Committee on an ongoing basis. Overall, we have had wins and we have had compromises. A notable success was ensuring that the City of Edmonton`s Current Planning Reserve Fund was not diverted to fund other municipal projects in their 2013 budget. The Builder Technical Committee’s initiation of a pilot Expedited Foundation Inspection Program with Edmonton’s Inspection Services was a major undertaking. We have purposely focussed on improving programs and events throughout the year. The two-day Residential Construction Industry Conference (RCIC) in May spotlighted 60 focussed speakers and included an expanded exhibit floor for over 1,000 participants. The conference has experienced 100 per cent growth over a three year period. RCIC 2014 promises to keep that trend alive. The Awards of Excellence in Housing in March recorded 871 submissions, 123 more than in 2012. 1,641 individuals attended the gala, a 14 per cent increase over the year before. The NextGen Committee initiated our Mentorship Program, which connects 55 NextGen members with 17 highly experienced, well connected industry mentors. The Committee hosted numerous networking events over the course of the year.
»
W I N T E R 2 0 14
Industry insider
5
message from the chief executive officer
Our Professional Development Committee has taken ownership of our monthly business lunches and we have seen much improvement in terms of topics and increased attendance. On the communications side, we recognized that multiple emails from various staff members, directed to the same membership addresses were part of an ineffective communication strategy. We returned to a system of focused communications through our regular Weekly Insider e-newsletter and make regular updates to our website, chbaedmonton.ca. We are also working with Source Media Group to produce our CHBA – ER magazine, The Industry Insider, on a quarterly basis. Although there are many events and committees I have not touched on, I want to stress that every one of them is effective,
6 industry
insider
W I N T E R 2 0 14
Building an Association is a job that never ends, which means that you can continue to expect even bigger and better things in the future. efficient, and focused, led by a dedicated Chair who makes it all happen. I want to thank everyone — the volunteers and the staff — for their patience and their commitment to re-shaping our organization and our environment. As we all know, building an Association is a job that never ends, which means that you can continue to expect even bigger and better things in the future. Over the next few months we will be introducing a new and improved Builder Realtor Program and will once again be working with Edmonton Fire Rescue Services on the Smoke Detector Program. We are also very excited about the new
commitment to our Edmonton Region Homebuilders Charity. Your NextGen Committee has jumped at the opportunity to raise $400,000 over the next three years to support additional funding for NAIT Scholarships and the construction of a nonprofit housing project. In 2014 we are committed to a continued program of review and improvement, all with the goal of building a great CHBA – ER that meets the needs and expectations of you, our members. Your Association is on course and is back to building relationships and effectively engaging the membership. We look forward to a great 2014! n
meet the president
Dan’s the man Look Master Builder’s Dan Brazinha steps up as CHBA-ER President
O
n January 1, 2014, Owner and President of Look Master Builder, Dan Brazinha, took over the reins from outgoing President Rod Taverner, to become the 62nd President of the Canadian Home Builders AssociationEdmonton Region. Dan has served on the Board of Directors for the past two years. In addition to his work with the CHBA-ER, Dan is involved with several local charities; most notably The Kids with Cancer Society with his co-titled sponsorship Revving up for Kids motorcycle ride. In 2002, Dan became a Certified Master Builder — a prestigious designation awarded to individuals who demonstrate continued education in the industry, extraordinary business management, and outstanding professional experience. As a second-generation builder, Dan started his career at Park Royal Homes in estimating. He later moved to Montorio Homes where he went from Construction Manager to General Manager before starting his own company, Look Master Builder. Industry Insider sat down with Dan to learn more about who he is and what drives him to succeed.
What inspired you to first get involved with CHBA? John McCaffray from Alquinn Homes wrote an article in this magazine a couple of years ago that really inspired me to get involved. He said something along the lines of, “You can sit on the sidelines and have your future determined for you or get involved and control your own destiny.”
That statement really struck a cord with me and I started volunteering with the Association shortly thereafter.
Tell me about someone who has influenced your decision to become a CHBA volunteer. I was fortunate to work at Park Royal Homes. John Hrynkow, a former CHBA President (locally, provincially, and nationally), not only taught me the business of home building, but through his involvement and passion for the industry, really showed me the value of getting involved in the CHBA. John
showed me, firsthand, the business and personal connections he was able to form as a result of his involvement with this Association. One of my business partners and mentors, Harry Stepper, held similar beliefs about the Association. As my career in the industry advanced, I knew I had to get involved.
What would you tell someone who is thinking about volunteering with the Association? I wish I would have done it sooner. Some of my closest friends, mentors, business W I N T E R 2 0 14
Industry insider
7
»
meet the president
partners, and building partners have come from the Association. There are so many opportunities to get involved, whether it is on a committee, helping at an event, or on a strategic level through the Board of Directors. Whatever your interests may be, your skill set or passion, the CHBA has a place for you. As members we get ten times more out of the Association than we put into it. The CHBA-ER can help you grow personally, in your career path, or to grow your business. I encourage anyone thinking of getting involved to contact one of the great staff members at the CHBAER office. You won’t regret it.
What do you see as our industry’s biggest challenges? There are several issues that are concerning, but if I had to pin-point two, I would say: the shortage of skilled labour and hidden government-imposed fees, levies, and taxes. Alberta’s unemployment rate is among the lowest in the country. For most that’s a good thing, but for a business owner, it presents a challenge. A tight labor market leads to higher building costs, which one way or the other mean higher housing prices. As builders we want to be able to sell our product for a good price, but not to the extent that houses become unaffordable. Costs aside, there comes a point where there are just not enough people to physically get the job done. Our customers’ expectations continue to rise while the resources that our industry has to work with only tightens. Something has to be done to address this challenge. Governments all across the country continue to pass down the costs of growth to private builders and developers in the form of taxes, levies and fees. Terms like 8 industry
insider
W I N T E R 2 0 14
Our region has little unemployment and interest rates are expected to remain low; consumer confidence is improving as a result, which is leading to steady activity in most market sectors. “housing affordability” and comments like, “we need to make sure Edmonton continues to be an affordable place for young families”, are constantly being used, yet municipalities continue to burden our industry with additional government imposed costs. These additional charges are passed down to the end consumer, ultimately making housing prices more expensive — counteracting their calls to make our communities more affordable and framing builders and developers as ‘the bad guy’ in the process. As an industry we have to continue working with local governments to reduce the practice of passing down costs through additional taxes, levies and fees. We need to make clear that all costs, whether direct or indirect, are ultimately paid for by the end consumer, the new home buyer.
What does Edmonton’s housing market have working in its favor? Edmonton is a great place to be. We have people by the thousands moving to our great province. They are coming here for the employment opportunities and the good quality of life those opportunities represent. Homes in Edmonton continue to be less expensive than other major markets in the country.
As a builder in the Edmonton market what trends do you see playing out right now? There continues to be a strong demand for entry level homes. Our region has little unemployment and interest
rates are expected to remain low; consumer confidence is improving as a result, which is leading to steady activity in most market sectors.
What would you consider to be your greatest business accomplishment so far? Look Master Builder. I have taken this idea from infancy and made it grow. I have been fortunate to work with some great people over the past ten years. Not only have they been instrumental in our success as a company, but I get to call some of them friends and business partners.
What has been your proudest accomplishment as a volunteer? There is so much to be proud of. CHBA-ER is such a great place and it takes countless volunteers and a great staff to make it what it is. I enjoy being a part of it.
What might our members be surprised to know about you? My parents came to this country not able to speak English and with no money. Through all the challenges and adversities they faced as immigrants, they taught me the value of hard work. As a kid growing up on job sites my dad always told me to take pride it whatever it is I did and that no job was beneath me. From spreading sand in basements, building decks and frost walls, to where I am today, I am grateful to both of them for instilling old school values in me. Those values have guided me in my life. n
feature
A place to age Canada’s population is getting older: is the housing industry reacting fast enough? By Michelle Lindstrom
T
he Baby Boomer generation can’t help but be trendsetters – there are just so many of them. Accounting for 29 per cent of Canada’s population in the 2011 Census, it’s a business savvy move for any business owner, be it retailers or home builders, to keep tabs on what this power-in-numbers group is up to. And what they’re up to right now, is aging. According to City estimations, by 2041, 32 per cent of Edmonton’s population will be seniors. The boom started after the Second World War, which means that by 2030, most people of that generation will be transitioning into retirement. The imminent future places a spotlight on our country’s straining workforce numbers, but also elbows the housing industry in the ribs to re-prioritize who it thinks of as its target market. Christenson Developments, an Edmonton-based sustainable community developer, has focused its area planning and construction on an older demographic since 1989. Greg Christenson, president and co-owner of the company, says the rising tide of seniors made the choice very simple for them. “Words like ‘tsunami’ have been used to describe when the Baby Boomers hit their senior years,” he says, adding that right now, it’s the Boomer’s parents that are filling his retirement-style residences. “Often it’s out of need more than lifestyle that people become interested in senior-style housing – places that have supportive services when they hit their late 70s and 80s,” Christenson says. “The average age to move into a senior’s homes is 84.” Everybody thinks of themselves as 10 to 15 years younger than what they are. That includes many Baby Boomers who Christenson says are not ready to be considered a senior. “When people make their housing decisions, they’re sometimes not pragmatic or realistic about it,” he says. This forces the question: How does one go about marketing this style of housing if their intended target market is not really thinking about aging? “The government has historically built long-term care facilities
» W I N T E R 2 0 14
Industry insider
9
feature
– acute care hospitals and nursing homes,” Christenson says. “More and more, the trend has been to build condos and discretely integrate the care and supportive services into condo-style homes.” That is precisely what his company does. Christenson even has its own care company that provides nursing, mail services, laundry, housekeeping, and more – a rarity, not a requirement, for senior home developers. “Increasingly, the province is funding the aging-in-place model,” Christenson says. This type of option means people can stay in their homes and purchase care services that come to them; either that, or move into an assisted-living facility where care is offered on-site. These are alternatives to moving into an acute-care home. Builders agree, choice in housing is what Baby Boomers want. It makes sense, therefore, to start building for this demographic now. “On the building side, it costs no more (at point of construction) to put in wider doors, lever door handles and slightly wider hallways even if you don’t need them. You’re opening yourself up to a bigger resale market when the so-called tsunami
10 i n d u s t r y
insider
W I N T E R 2 0 14
If you design with an older, frail person in mind, people will be able to stay longer in their homes.” hits,” Christenson says. “If you design with an older, frail person in mind, people will be able to stay longer in their homes.” But as Christenson notes, most Baby Boomers (currently between 50 and 60 years old) are very active with work, travel, everyday errands (including driving) and exercise. The thought of moving in to a senior’s facility is the last thing on their minds. This is why Christenson Developments breaks its offerings into two groups: active adult living and retirement living. Active adult community properties are typically low maintenance with a few basics for the future: wider hallways, lever handles, shower stalls with no lip and so on. They might include amenities like parking and security for residents who travel to summer homes or leave for weeks at a time for vacation.
Retirement communities, on the other hand, focus a lot more on the area surrounding the home. Christenson compares this to a doughnut. “The doughnut is typical, single-family houses. We’re building the hole in the doughnut,” he says, “where you’re putting together the shopping centre development and, in some cases, public amenities like a park or green belt.” Burke Perry also builds for the aging homeowner. He is the founder of Perry Homes, a single-family executive custom home builder and co-founder, with partner Bill Davidson, of Tapestry Developments in Edmonton. Tapestry Developments builds adult lifestyle bungalows and has done so for the past eight years. The key to his company’s designs is providing residents with something different. “We’ve got to motivate people to have a reason to move,” Perry says. “We can use modern technology, energy efficient appliances, new materials … but the new floor plans and designs must be suited to the evolving lifestyle of the active aging adult. Otherwise, why would they bother moving?” When retirees choose to grow older in their existing homes – the one they bought many years ago when the kids were “tweens” – we have to consider what that means for the community and local housing market. According to the City of Edmonton, areas currently impacted by clusters of seniors are: near downtown, northwest (Jasper Place and West Jasper Place), south (Mill Woods and Kaskitayo), and east (Londonderry). The population of these cluster areas has dropped radically, Christenson says, since only one to two retirees live in each home,
feature
compared to a family of five (two adults and three kids). The need for strip malls and local amenities declines as residents who can no longer walk or drive to the corner store, just stop going. Businesses then move further out to the suburbs where the younger families are finding space and more-affordable homes. Christenson notes that if people “overstay” in their single-family home, they tend to go from their house right to a nursing home. “Many older neighbourhoods would benefit from residents moving to alternative lifestyle homes and younger, middle-aged people moving in who are more likely to buy and renovate because they have the physical ability to do it,” he says. For post-80s-era homes, there is lessresistant turnover because those homes are mostly two-storeys; eliminating stairs and levels is one of the first adjustments the aging population makes when considering a new place to live. Marie Soprovich, owner of Edmonton’s Aquarian Renovations, says removing dropped or raised flooring is a common request when renovating for the older homeowner. Widening doors and hallways and adding bright, sunny sitting areas are top picks for those choosing to stay in their homes throughout retirement. “Baby Boomers are a fiercely independent group
and if they have the means, will choose to age their way,” Soprovich says. “Many have the financial resources to act upon the choices they have available for their lifestyle and, therefore, have the choice to renovate or buy into a condo or adult community.” Christenson says builders are starting to develop a curiosity about planning for the aging population and have asked him a few questions about where to start. He admits it’s a little intimidating, requires knowledge of the health-care system, and takes patience, requiring a commitment of about eight to ten years before it really pays off. “Traditionally builders across Canada are only interested in seniors housing when the market gets slow, but then it picks up again and they think, ‘Why would I worry about that stuff?’” n
Greg Christenson
Traditionally builders across Canada are only interestd in seniors housing when the market gets slow, but then it picks up again and they think, ‘Why would I worry about that stuff?’”
By The Numbers • In 1976, Baby Boomers were in their 20s and drove housing starts to a record 274,000.
• September 2013: 26.1 per cent of Canadian condo owners were 65 or older.
• During the 20-year baby boom, women averaged having 3.7 children. The recent average is 1.7 children.
• There are 3,969 subsidized apartment units in Edmonton for seniors with rent typically capped at 30 per cent of combined gross monthly income of people living in the unit.
• In 2008, 70 per cent of Edmontonians 55 or older lived in a house; 13 per cent bought an annual bus pass.
• Of those polled that are 55 and over and retired, 66 per cent moved out
of their home due to a health change rather than for downsizing reasons. • 83 per cent (same poll as above) said staying in their own homes and paying for home care is the most appealing option for them. (According to information gathered from Stats Canada, Conference Board of Canada, CHBA, National Household Survey, RBC Survey and The City of Edmonton)
W I N T E R 2 0 14
Industry insider
11
committee report: government relations
Important initiatives Keeping key decision and policy makers informed and engaged By Dan Brazinha, Chair, Government Relations Committee
2
013 was a very active year for the CHBA – ER Government Relations Committee. Through its efforts, the Association was engaged in a wide variety of initiatives which extended to nearly every major municipality in the region. Developing and maintaining productive and cordial relationships with local decision makers continues to be an ongoing and evolving objective for the CHBA – ER. Ensuring our Association is viewed as a credible voice in the process of developing public policy was an ongoing challenge in 2013; one we met head on. Over the course of the year, the Committee met with numerous key decision makers, reviewed and commented on several new zoning bylaws (along with a seemingly endless stream of zoning regulation changes), and was engaged in a multitude of municipal and non-government initiatives. On top of all of this, 2013 was highlighted by municipal elections which took centre stage throughout the summer and fall. In all of its engagements, the Committee remained focused on two things: maintaining the interests of our members and representing those interests to local municipal governments. This revolved around ensuring that municipal governments understood how their decisions impacted the business of building new homes and renovating the existing housing stock. Numerous modifications to 12 i n d u s t r y
insider
W I N T E R 2 0 14
regulations (both proposed and adopted) resulted from the Association’s engagement. The steady stream of invites we have received to participate in new municipal and non-government initiatives, speaks to how the Association is being viewed as an important part of the overall public policy development process.
2013 Highlights As we enter a new year it is good to reflect on the past year’s activities, both to help guide us over the months ahead and to ensure we continue to build on our achievements. While there is simply not enough space to list all the activities the CHBA – ER has been engaged in, there were four key initiatives that truly reflect the Association’s commitment to representing members’ interests and building a credible and effective industry voice. Leadership Dinners. The Association’s tried and true formula of engaging directly with key municipal leaders continues to be effective. Even with municipal elections and campaigns that began well in advance of the actual election call, CHBA – ER held two Leadership Dinners in 2013 — one with the City of Leduc’s Mayor and Council and the second with the City of Edmonton. These dinners were very productive and highlighted the value of face-to-face meetings between the Association’s and the municipality’s leadership teams.
Meeting with the City of Edmonton Current Planning Branch. Developing and maintaining a constructive working relationship with the City of Edmonton was a key strategic initiative in 2013. Regular meetings with the City’s Current Planning Branch (home to both the building inspection and development permit teams) were established and have proven to be increasingly productive. Through the joint effort of our Builder Technical, Government Relations, Renovation, and Industry Advisory Committees, a well rounded and comprehensive agenda of issues was presented to the City. Although the list was long, central to every discussion was the continued challenge of lengthy timelines for obtaining development and building permits. Consistently presented and well supported by evidence, the Association has been dogged in its call for improvements to these processes. Partnership with Edmonton Chamber of Commerce. As a member of the Chamber’s Current Planning Business Advisory Committee, CHBA-ER met several times with the Current Planning Manager to provide advice on the Branch’s activities. Working with representatives from the Chamber, UDI, BOMA, and NAIOP, our President, Rod Taverner, advocated on behalf of CHBA – ER. These various organizations work close together to identify a broad range of concerns
committee report: government relations
and to provide an equally broad range of suggested improvements. The Committee provides a mechanism for the larger business community to coordinate input into Current Planning’s business activities. Municipal Elections. In August the Association partnered with UDI-Edmonton Region to host a City of Edmonton Mayoralty Candidates Forum. With the three leading candidates responding to a series of questions from the two industries, and with a number of local media on hand to record their responses, this forum was a key event in the summer and fall campaign season.
The Year Ahead The new home building and home renovation industry enters 2014 well positioned to take advantage of current conditions. While 2013’s municipal elections brought major changes to the composition of our
region — Mayor Iveson took over the City of Edmonton’s top seat and is joined by an almost entirely new City Council. There are new mayors and councilors throughout the Capital Region — the Association’s efforts over the past year have provided a solid basis for future engagement. Notwithstanding the Committee’s many ongoing initiatives and new ones which are sure to arise, the challenge over the coming year will be to: introduce the CHBA – ER to the new decision makers, confirm established relationships, and continue to ensure that the Association is seen as a key partner
in the dialogue of public policy development and implementation. CHBA – ER’s Government Relations Committee is hard at work planning a new series of Leadership Dinners for 2014. The Committee will continue to build on the success of regular meetings with the City of Edmonton Current Planning Branch, will work with industry partners to ensure that the interests of our members are kept front and center, and will continue to be a key player in defining the industry’s position on a wide range of municipal issues across the Edmonton Region. n
[
]
To learn more about the CHBA – ER Government Relations Committee (and to see examples of the positions developed), visit www.chbaedmonton.ca/ member-services/committees/government-relations. If you are interested in volunteering on the Government Relations Committee, or would like more information on any government relations initiatives, contact Dennis Peck, CHBA – ER Government Relations Manager: dpeck@chbaedmonton.ca / (780) 395-2982.
W I N T E R 2 0 14
Industry insider
13
committee report: economic
In praise of 2013 Best year for the industry since 2007 By Richard Goatcher, Economic Analyst, CHBA – Alberta
2
013 was an excellent year for home builders in the Edmonton Region. A strong economy, rising incomes, high net migration, tight rental markets, and a limited selection of resale listings combined to bolster demand for new homes. At the November CHBA – ER Economic Committee meeting, builders around the table were generally reporting improved traffic and sales. CMHC reported that total starts in Greater Edmonton were up by almost 12 per cent from the first 11 months of 2012 to 13,462 units. 2013 was the best year for the industry since 2007. Single-family starts in the Edmonton area increased by six per cent from
14 i n d u s t r y
insider
W I N T E R 2 0 14
January to November 2012 to 5,581 units. On a year-to-date basis, multifamily starts were up by 16 per cent from the first 11 months of 2012 to 7,881 units. With one month left in 2013, multi-family builders posted their strongest performance in 35 years and the second best year on record. Statistics Canada’s New House Price Index (NHPI) for Edmonton has not increased much despite rising costs for materials, labour and serviced land. This index of contractor selling prices was up on average by .6 per cent in the first nine months of 2013. CMHC’s average absorbed new house price for Edmonton has increased faster than the NHPI but is
impacted by the product mix. Compared with 2012, fewer single-family homes sold for under $450,000. After 10 months, 2013’s average absorbed price was up almost four per cent from January to October of last year to $531,871. Edmonton’s residential resale market continues to enjoy improved sales over 2012 and rising prices. After 11 months, 2013 sales across the region (CMA only) were up seven per cent compared with the same time last year to 16,227 units. Average resale home prices (all unit types combined) were up by three per cent from January to November 2012 to $349,158. 2013 was the best year for Edmonton’s Realtors since 2009. n
committee report: membership As members, we get ten times more out of the Association than we put into it.” — Dan Brazinha, President
The CHBA advantage Are you making the most of your membership? By Sheri Mitchell, Royal Bank of Canada
W
hat does having a membership in the Canadian Home Builders’ Association mean to you? What benefits are you receiving as a member of our organization? Do you regularly attend CHBA – ER social events? Are you actively involved on one of our many committees? Are you aware of all of the wonderful opportunities available to you as a member?
Volunteering on a committee With 20 active CHBA – ER committees, the Association offers all kinds of volunteer opportunities for members to take advantage of. Committees cover everything from building technical to event planning; there is something for everyone here. Events If volunteering is not something you have time for right now, be sure to make
it out to some of our events — Builder Breakfasts, Luncheons, Presidents Ball, Economic Forecast, etc. To see a full list of upcoming CHBA – ER events, visit our website www.chbaedmonton.ca. You are a member. This is your association. Make the most of your membership and get involved! Contact Lisa Chmilar, Membership Manager at lchmilar@chbaedmonton.ca or (780) 395-2980 to discuss the benefits of your membership. n
NextGen members: the future of the industry We want you to get involved! By Bryce Milliken, Ogilvie
B
eing a member of the CHBA – ER offers so many opportunities. Did you know that we have 20 active committees and that the Association hosts events each month that apply to all aspects of the homebuilding industry? The CHBA – ER NextGen Committee exists to encourage up-and-coming members to get involved and take part in giving back to our community and our industry. As future business leaders, community leaders, and Association
leaders, it is important to start building your knowledge and professional contact base early. You can do that by attending Association events or joining a committee. CHBA – ER’s NextGen Mentorship Program is here to help you get started. This informal group allows NextGen members to interact one-on-one with long-serving industry leaders, including former CHBA-ER chairs, board members, and presidents. This program allows members to learn directly from
those individuals who built this industry from the ground up. If you are interested in getting involved with the CHBA – ER NextGen Committee, one of our members would be more than happy to attend your first few events with you and introduce you around. n
[
]
For more information on this or any of our other volunteer committees, contact Lisa Chmilar, Membership Manager at lchmilar@chbaedmonton.ca, (780) 395-2980.
W I N T E R 2 0 14
Industry insider
15
industry news: board of directors
Meet your new board Introducing the 2014 CHBA – ER Board of Directors Stewart McAndrews Dolce Vita Homes LP (President)
A Chartered Accountant, Stewart served as Vice President of Professional Services at MTS Allstream and as a partner at Wooldridge and Company Chartered Accountants, before becoming President of Dolce Vita Homes LP in 2008. Stewart is an alumnus of the University of Alberta and played with the Edmonton Eskimos in 1983. As a member of the Board, Stewart hopes to gain greater insight into the CHBA and to provide guidance to an industry that has a tremendous economic impact on the community. He believes in service to others and that integrity in business breeds success. Stephen Ruggiero Kimberley Homes (President & Managing Partner)
Stephen’s first involvement with the Association was over 10 years ago when he was asked to take over as Kimberley Homes’ representative on the former Builder Council, which he has remained a part of through its evolution to the current Builder Technical Committee and Industry Advisory Council. He has participated in numerous CHBA – ER committees over the years, including the Government Relations Committee, the SAM Awards/ 16 i n d u s t r y
insider
W I N T E R 2 0 14
Awards of Excellence Committee, the Health and Safety Committee, and most recently, as a member of the Board on the CHBA/UDI Joint Committee. This is Stephen’s second term on the CHBA – ER Board of Directors. It is his hope that through his experience as a builder member, 10 year volunteer history with the organization, and two terms on the Board, he will provide a sense of continuity at the executive level. Jason Sutton Icon Flooring Inc (General Manager)
After 10 years of sales and operational management with G.E Capital Canada, Jason joined All Weather Windows where he held various management positions over a span of seven years. He is now the General Manager of Icon Flooring Inc. Jason attended the University of Alberta and NAIT’s Business Administration Program. As a member of the Board, Jason hopes to use networking opportunities to build stronger relationships with government partners. Tally Hutchinson Daytona Group of Companies (President)
Tally began his home building career 1994. In 2000, he earned his Master Builder designation and completed a degree in Construction
Engineering. Seven years later he became President of Daytona Group of Companies. As a member of CHBA – ER’s Executive, Tally’s goal is to continue growing the Association’s membership and adding value for members. He hopes to strengthen the partnership between CHBA – Edmonton and other local chapters. Tally is Vice President of CHBA – Alberta. Colin Wiebe All Weather Windows (Business Development Manager)
Over the past year and a half, Colin has gone from Operations Manager – Renovations to Business Development Manager. Prior to joining full-time, Colin worked twelve years with the company in various roles. He is responsible for starting AWW’s PVC Recycling Program. Colin holds a Law Degree from the University of Kent at Canterbury, where he was awarded the Antony E. London Award for outstanding contribution to UKC Law School. He was the President of Kent’s Student Law Society. Colin is motivated by the vision of a greener, more sustainable future. As a Director, he hopes to further the industry by supporting members and seeking sustainable building solutions as technological advancements become more accessible. As a supplier to the industry, he looks forward to supporting the growth of the new construction market and enhancing the Association’s relationship with government.
industry news: board of directors
Peter Jackson Pals Geomatics (Director)
Peter has been involved in the CHBA – ER since 1971. He served as President in 2006, and has been both Director and Chair of the General Council on more than one occasion. Over his 42 years with the Association, Peter has sat on numerous committees, sub committees and task forces. He has been awarded the CHBA-Alberta Maple Leaf Award for Non-Builder of the Year and has three times received the National Canadian Home Builders’ Presidential Award of Honor. He has numerous Exceptional Service Awards in recognition of personal contribution and support to the industry. In 2008, Peter received both the UDI Outstanding Contribution to Industry Award and the Canadian Home Builders Association Life Membership Award. Peter believes that business is primarily about serving others, creating value, constantly improving products and services, committing to clients, being there for customers, and supporting them long-term. One cannot be successful without intense passion and focus. Peter believes that the CHBA gave him the venue to accomplish these goals and become a successful business person. He hopes to bring a voice of experience and background to the 2014 CHBA – ER Board of Directors. Dan Hanna Parkwood Group of Companies (President)
As a second generation builder, Dan Hanna grew up in the home building industry. He began
his career out in the field in 2003, and progressed to President of Parkwood by 2010. Since then, the company has doubled its housing sales. A firm believer in Corporate Social Responsibility, Dan’s priority is to ensure that the Parkwood Group of Companies gives back to the community, industry, and its staff. He currently sits on the Board of Directors for the University Hospital Foundation’s Brain Trust Campaign and is actively involved with Kids with Cancer and the Juvenile Diabetes Research Foundation. Dan chaired CHBA – ER’s RCIC Conference from 2010 - 2013. He is excited to serve on CHBA – ER’s Board of Directors and is committed to making the Association more transparent while ensuring that our industry continues to improve the city we live in. Rod Taverner Rolling Mix Concrete (President)
Rod attended Simon Fraser University in BC before moving to Edmonton to start Rolling Mix Concrete with partner Tony DiStefano in 1994. Today, the company is family owned and operated and is the only full-service, ready mix concrete company providing concrete pumping and residential flat work construction. Rolling Mix is one of the largest independently owned concrete suppliers in Canada. It was Past President, Alphonse Pilon, who first encouraged Rod to get involved with the CHBA – ER. Serving the Association was an opportunity to give back some of the benefits the industry had shown him. Rod defines success as reflecting positively on one’s personal pursuit to be better. Being a good citizen and helping those in your community – that’s success.
As Past President, he hopes to provide insight to the new members of the Board and to share what he learned during his time as President. He looks forward to another successful year. John McCaffray Alquinn Homes (President)
Before founding Alquinn Homes in 2011, John McCaffray served as Vice President of Housing for the Daytona Group and COO at Innovations by Jayman (Edmonton). He also has extensive experience in the forest and road building industries in both Alberta and BC. John has a Certified Management Accountant Designation and an MBA from City University. Bob Moon Gem Cabinets (Sales Manager)
Bob has over 30 years experience in the housing industry. He started out as a cribber and a framer, eventually becoming Superintendant for a large home builder. He has been with Gem Cabinets for over 20 years. Bob served on the CHBA – ER Membership Committee in the early 2000’s and has been an active RCIC volunteer for the past few years. He gets inspired watching people learn and grow in their chosen profession, and hopes that his time on the Board will allow him to share his knowledge and experiences, learn different leadership styles, and better understand CHBA on all levels. n
W I N T E R 2 0 14
Industry insider
17
feature: anhwp
New home buyer protection act What you need to know By Joan Maisonneuve, Manager of Policy and Industry Issues, CHBA – Alberta
R
ecent sessions held throughout Alberta on the new mandatory home warranty program attracted almost 800 people. You’ve asked for more information and we’ve listened. CHBA – Alberta has posted information, presentations, documents, and links online at www.chbaalberta.ca, and will continue to distribute material through locals in an effort to help builders and renovators get ready for the February 1st, 2014 implementation of the New Home Buyer Protection Act. Check the website regularly for updates. As members, you are encouraged to talk to your warranty providers about coverage for your projects and to ask municipal officials how they will deal with permits. Send an email to info@chbaalberta.ca with your questions and comments. Here’s a primer to get you started. What types of homes require warranty coverage? Warranty is required for houses, condominiums, recreational properties, and modular and manufactured homes unless they will be used as purposebuilt rentals, social housing, Habitat for Humanity, hotels, or motels. Ownerbuilders can also obtain an exemption from the warranty requirement if they agree to certain conditions. Coverage is required for common property or facilities in a condominium development. Coverage is mandatory for building
18 i n d u s t r y
insider
W I N T E R 2 0 14
permits issued after February 1, 2014, unless there is an exemption. When does a renovation require warranty coverage? The regulations require a warranty be included for substantial reconstructions where 75 per cent of the enclosed space of a home above the foundation is new. That means, if you started with a 1,000-squarefoot home, it would be necessary to add another 3,000 square-feet to trigger the requirement for a warranty. Rebuilding a home from walls in and floor up does not require a warranty. New construction on an existing foundation — after a fire, for example — does require a warranty because more than 75 per cent of the
space is new. Renovators are required to warranty elements of the home that are retained. What is covered and for how long? Materials and labour are covered for a year; delivery and distribution systems such as electrical, gas, plumbing, and heating for two years; defects to the building envelope for five years with an option to purchase two additional years; structural defects for 10 years. There are coverage exclusions, such as landscaping, site grading, some retaining walls, home appliances, historic resources and designs, and some material or labour not supplied by a builder. Coverage is also excluded
committee report: feature: ANHWP anhwp
In the future, realtors and home buyers will likely want to check on warranty coverage before making an offer on a property. for damages caused by weathering, acts of nature, normal wear and tear, shrinkage, alterations not by the builder, improper operation, or maintenance. What are coverage limits? The limit for a single family home is $265,000 and $130,000 on a multi-family unit. There is also up to $3.3 million in additional coverage for common property in each building of multi-family projects. CHBA – Alberta believes these limits are more than adequate. Most warranty issues relate to minor defects. The most expensive claims are structural and building envelope problems. These are rare and even then can be repaired for well under the limit. When does coverage commence? For single-family and multi-family units, coverage begins on the date when the home is first occupied, permission to occupy is granted, or the transfer of title is registered. Coverage for common property is much more complicated. It begins when title of the first habitable unit is transferred to a purchaser and the builder has agreed to prepare a Building Assessment Report (BAR) within 180 days of the transfer of title. CHBA is awaiting more details around the BAR. What is the role of compliance officers? Compliance officers will investigate whether or not professional builders are
constructing a home without a warranty, if coverage does not meet minimum requirements, if an owner-builder has started a home without authorization or is selling a property without warranty, or if permits are issued without verification of coverage. They will also oversee rental properties. They will not duplicate the role of Safety Code Officers. What are the responsibilities of the homeowner? Homeowners have a duty to mitigate damages by reporting problems in a “reasonable” time, notifying the warranty provider, taking “reasonable” steps to prevent more damage, and they must provide access to the property. Homeowners now also have access to the insurance tribunal process to settle disputes. What’s the fee to register a home? The fee is set at $95. The government says the fee level will recover costs of operating the registry. Owner-builders will be charged a higher fee because the workload in dealing with those applications will be substantially higher. That fee has not yet been set. How do I register a home? Municipal Affairs says builders will enter information through a secure online portal called MA Connect. They expect to have the website online in January so builders can begin to register as users.
Here are the steps: • Request MA Connect access. The New Home Buyers Protection Office (NHBPO) will create a user account and email you a username and temporary password. On first login, you will be prompted to accept the terms of use and reset your password. This is a one-time procedure. • Complete your builder profile (once per builder). • Fill out a New Home Registration Form. • Pay the registration fees. • Submit the form for approval. • Registrations are routed to the warranty provider after payment is received. The warranty provider confirms coverage. • Registrar approves the registration and the coverage is posted on the registry. • Permit issuer verifies coverage and issues a building permit. • Warranty providers have the ability to batch upload registrations on behalf of the builder. Who will use the registry? Warranty providers will have access to the system to confirm that coverage is in place. Homeowners will be able to check the warranty status of a property. Municipal officials may use the registry to check if a warranty is in place before issuing a building permit, but procedures will vary from community to community. Check with your local officials. In the future, realtors and home buyers will likely want to check on warranty coverage before making an offer on a property. Lenders are also likely to be interested in this information. n
[
]
To learn more, contact: Joan Maisonneuve, Manager of Policy and Industry Issues, CHBA-Alberta joan.maisonneuve@chbaalberta.ca 780.424.5890 or visit: www.chbaalberta.ca/warranty-information
W I N T E R 2 0 14
Industry insider
19
event update: rcic
Residential Construction Industry Conference Two full days of leadership, learning and networking
T
he Residential Construction Industry Conference (RCIC) is a two day event organized by the Canadian Home Builders Association – Edmonton Region, taking place April 2nd3rd, 2014 at the Northlands Expo Centre. RCIC brings together different businesses and organizations within the residential construction industry for two all-access days of technical sessions, a trade show, and business networking opportunities. RCIC is the preferred educational resource for members of the residential construction industry in the Capital Region. The itinerary for the 2 day RCIC 2014 program is as follows:
Wednesday April 2nd, 2014 7:00 – 9:30 a.m. Kick-off with breakfast and keynote speaker Jeff Shore. Sessions for the remainder of the day.
Day
1
Keynote: Bold Leadership Given equal measures of intelligence, people skills, and problem-solving prowess, why do some leaders excel where others falter? What is the elusive missing link to success? The Keynote Address will take place at the back of the Exhibit Hall (Hall F). Sessions begin immediately afterward. Exhibits open at 7 a.m. and stay open throughout the day and during the Ice Breaker Reception (4:30 p.m. – 6 p.m.). 20 i n d u s t r y
insider
Thursday April 3rd, 2014 7:30 – 8:30 a.m. Registration and breakfast. Sessions for the remainder of the day. Sessions begin immediately following breakfast. Exhibits open at 7:00 a.m. and stay open all day.
Day
2
Sessions: With over 60 sessions, RCIC 2014’s speaker lineup is sure to offer something for everyone. A full list of RCIC 2014 session topics can be found online at www.rcic.ca. Speakers include: Carol Smith, Murray Frank, Darrel Paul, Philip Jones, Dennis Chopko, Vik Maraj, Todd Hirsch, Jan Chappel, Ed Kalis, Holly Stengel. More speakers are being announced each week, so be sure to check the website regularly for updates. A full list of session topics and speakers can be found online.
W I N T E R 2 0 14
New for 2014! A Sales Rally component has been introduced to the 2014 RCIC lineup. Sales Rally headliner, Jeff Shore, will be presenting two half-day sessions — one in the morning and one in the afternoon — Thursday, April 3rd. This is a must see for all sales people.
Morning Session The 4:2 Formula: Getting Buyers off the Fence and Into a Home This three hour selling skills seminar features a multi-faceted learning experience that will include topics such as: • Connecting to the Customer’s Mission • Nailing the First 5 Minutes • Understanding the “Why” Behind the “Want” • Creating a Unique Value Proposition • Critical Closing Milestones • Asking for the Sale on Visit One
Afternoon Session Bold Leadership: Maximum Market Share This three hour sales leadership seminar is focused first and foremost on the development of Sales Leaders as highly effective and disciplined lead conversation coaches. The program will focus on both top-level and fieldlevel disciplines of effective Sales Leaders, including: • The 4 Pillars of a Maximum Market Share Mindset • Implementing Strategic, Process-Driven Price Increases • The 3 Magic Questions: Coaching for Lead Conversion • Weekly Field and Phone Coaching Skills • Building a Peak-Performance Profile • The Energy/Drive Assessment
event update: rcic The RCIC Exhibit Floor has seen 100 per cent growth since 2011! This year, in order to accommodate our growing list of exhibitor booths, we moved the show to Hall E which boasts an impressive 53,000 square-feet of floor space. The RCIC Committee has also added a number of new and exciting features to this year’s Exhibit Floor. They include: • A Delegate Café where guests can check their email, connect with the office, and network with other delegates. • Breakfast, coffee breaks, and lunch served daily on the Exhibits Floor. • Wednesday morning’s Keynote Address featuring powerhouse sales expert, Jeff Shore. • An Ice Breaker Reception to mark the end of Day One. • A diverse group of exhibitors showcasing the latest trends and innovative products. • This year’s sessions schedule has been re-designed to ensure the highest amount of traffic possible on the Exhibit Floor.
become an
exhibitor
2014 Exhibitors Accent Heating & Air Conditioning Access Plumbing & Heating Ltd. Alberta Durable Deck Ltd. Alberta Hardwood Flooring Ltd. Axford Agencies Barcol Doors & Windows Baywest Projects Ltd. Best Plumbing & Lighting Ltd. Blanco – RMB Sales Can-Cell Industries Inc. Creative Door Services Ltd Durock Alfacing International Ltd. Gem Cabinets Ltd. Gentek Building Products Glenora Lumber & Building Supplies Ltd. Habberjam Mechanical Inc. Home Front Software I-XL Masonry Supplies Ltd. Icon Flooring Jayson Roofing Inc. Kern Industries (1989) Ltd. – Kohlar & Hytec
(to date)
Kitchen Craft Cabinetry Leduc Truss Inc. Liberty Security Mainline Backflow Products Inc. Moen Inc. – McKell Marketing Ltd. Overhead Door Company of Edmonton, a division of Stordor Inv Penta Protective Coatings Ltd. PHBI Ply Gem (CWD Windows and Doors) Points West Marketing Inc. Poly Mor Canada Rolling Mix Concrete Ltd. Stoneworks Granite & Marble Inc. Trail Building Supplies Ltd. Weiser/Pfister Weiss Johnson Sheet Metal Ltd. Westcon Precast Inc. (a division of St. Albert Precast) Western Building Supplies (Windsor Plywood) Wood & Energy Store – Dyand Mechanical
become a
sponsor Sponsorship opportunities for this great event are still available and can be found on our website. Gold Brookfield Residential
Silver Owens Corning Canada
Bronze Durabuilt Windows & Doors Inc.
Session room CMHC Daytona Homes Master Builder Melcor Developments Ltd.
Support Landmark Group Marcson Homes Ltd. Qualico Communities Sabal Homes Stantec Geomatics Ltd.
[ ] For more information regarding RCIC 2014, please visit our newly designed website at www.rcic.ca. To learn more about exhibitor and sponsorship opportunities, contact: Kendall Franklin, Conventions & Conferences Manager, kfranklin@chbaedmonton.ca (780) 702-0326.
W I N T E R 2 0 14
Industry insider
21
calendar of events January
22 Membership meeting - 12 - 1 p.m. 23 Builder Technical meeting - 12 - 1 p.m. 27 Professional Development meeting - 12 - 1 p.m. 28 NextGen meeting - 12 - 1 p.m. 29 Builder Breakfast - Opportunities and Risks from Change,
7 - 9 a.m., Edmonton Petroleum Club, 11110 108 Street
February
1 President’s Ball - 5 p.m.
The Westin Edmonton, 10135 100 Street
6 RCIC Exhibit - 9 - 10 a.m. 11 Membership meeting - 12 - 1 p.m. 12 Health and Safety meeting - 12 - 1 p.m. 13 Industry Advisory meeting - 12 - 1 p.m. 17 Board of Directors meeting - 11:30 - 1 p.m. Office closed - Family Day 19 Government Relations meeting - 8 - 10 a.m. Membership meeting - 12 - 1 p.m. 20 Renovation meeting - 12 - 1 p.m. 24 Professional Development meeting - 12 - 1 p.m. 25 NextGen meeting - 12 - 1 p.m. 26 Builder Breakfast - 7 - 9 a.m.
Edmonton Petroleum Club, 11110 108 Street - 12 - 1 p.m.
27 Builder Technical meeting
March
6 RCIC Exhibit - 9 - 10 a.m. 10 Membership meeting - 12 - 1 p.m. 11 Economic meeting - 12 - 1 p.m. 12 Health and Safety meeting - 12 - 1 p.m. 13 Industry Advisory meeting - 12 - 1 p.m. 15 Awards of Excellence in Housing Gala - 5 p.m.
Shaw Conference Centre, 9797 Jasper Avenue NW
17 Board of Directors meeting - 11:30 - 1 p.m. 19 Government Relations meeting - 8 - 10 a.m. Membership meeting - 12 - 1 p.m. 20 Renovation meeting - 12 - 1 p.m. 25 NextGen meeting - 12 - 1 p.m. 26 Builder Breakfast - 7 - 9 a.m.
Edmonton Petroleum Club, 11110 108 Street
27 Builder Technical meeting - 12 - 1 p.m. 31 Professional Development meeting - 12 - 1 p.m.
April
2-3 Residential Construction Industry Conference (RCIC 2014)
Edmonton Expo Centre, 7515 118 Avenue
3-5 CHBA National Conference
Fairmont Chateau Whistler, Whistler, BC
8 Membership meeting - 12 - 1 p.m. 9 Health and Safety meeting - 12 - 1 p.m. 10 Industry Advisory meeting - 12 - 1 p.m. 16 Government Relations meeting - 8 - 10 a.m. 17 Renovation meeting - 12 - 1 p.m. 18 Office closed - Good Friday 21 Board of Directors meeting - 11:30 - 1 p.m. 24 Builder Technical meeting - 12 - 1 p.m. 28 Professional Development meeting - 12 - 1 p.m. 29 NextGen meeting - 12 - 1 p.m. All committee meetings will take place in the CHBA – ER Board Room, unless otherwise specified. Committee meeting dates and times are subject to change.
22 i n d u s t r y
insider
W I N T E R 2 0 14